Photo courtesy of Gage Skidmore/ Flickr
Story by Kali Hammon/ Contributing Writer
According to a recent online survey by MTSU’s Jones College of Business, the Tennessee Business Barometer Index has increased to a record high shortly after the election of President Donald Trump.
The quarterly index rose to 470 last month compared to 177 in October of last year.
MTSU and the Tennessee Chamber of Commerce and Industry partnered and created the Tennessee Business Barometer in July of 2015. The Tennessee Business Barometer is a quarterly index that is designed to present the outlook of various business leaders throughout Tennessee. Business leaders respond to a 17 question survey regarding the current economic situation, future economic expectations, business/firm performance and employment outlook. Tennesseans who participated in the survey included managers of firms, business owners, vice presidents, etc. An index is reached by adding the percentage of favorable responses while subtracting the negative ones.
In the most recent survey, business leaders were asked a series of questions specifically about the potential impact of President Donald Trump. The majority, 73 percent, believes Trump’s win will have a positive effect on the economy in America.
The Current Situation Index increased from 125 to 186, showing that Tennessee business leaders are feeling much better about the current economy. Business leaders also seem to be hopeful about the future economy, considering the Future Expectations Index increased to 181 from 25 since the previous survey in October. The results showed that over half, 53 percent, of participants think that state of United States business will be better within a year. One question on the survey asked respondents, “What one word comes to mind when you think about the future of the overall American economy?” Some of the words respondents answered with were growth, hopeful, leadership, opportunity, optimistic and promising.
“The largest gain was seen in the outlook for the future of the economy,” said Dr. Tim Graeff, MTSU professor of marketing and coordinator of the index through the Jones College’s Office of Consumer Research in a recent press release. “This follows Donald Trump’s election in the presidential election and signals newfound optimism among business leaders.”
He continued, saying, “Such upturns in optimism can lead to increased investments and hiring, which can have subsequent positive effects leading to growth in the overall economy.”
The next Tennessee Business Barometer survey is scheduled to take place in April.
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